What is percentage price change of these bonds

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Reference no: EM131313934

Bond J has a coupon rate of 7 percent and Bond K has a coupon rate of 13 percent. Both bonds have 16 years to maturity, make semiannual payments, and have a YTM of 10 percent.

If interest rates suddenly rise by 2 percent, what is the percentage price change of these bonds?

Percentage change in price of Bond J?

Percentage change in price of Bond K?

What if rates suddenly fall by 2 percent instead?

Percentage change in price of Bond J?

Percentage change in price of Bond K?

Reference no: EM131313934

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